US stocks inch higher following solid April jobs report

Friday

May 5, 2017 at 9:55 AMMay 5, 2017 at 9:56 AM

U.S. stocks are rising Friday after the government said hiring bounced back in April.

Associated Press

NEW YORK — U.S. stocks are rising Friday after the government said hiring bounced back in April. That suggests the economy should start growing faster in the next few months after a sluggish start to the year. IBM is slumping after billionaire investor Warren Buffett said he sold a large part of his stake in the company.

The Dow Jones industrial average slumped 20 points, or 0.1 percent, to 20,931 because of IBM's loss.

JOBS: Employers in the United States added 211,000 jobs in April, according to the Labor Department. That was a relief to investors who were concerned about slower hiring and economic growth over the first three months of the year because. Wages grew at a slower pace, however.

IBM GETS BUFFET-TED: IBM fell after Warren Buffett said he's sold about 25 million shares of the technology company, about a third of the stake that his Berkshire Hathaway company had owned. Buffett started buying IBM stock in 2011. IBM faces stiff competition from companies including Microsoft and Amazon, which have focused on cloud computing services. IBM reached an all-time high of $215 in early 2013. It fell $3.92, or 2.5 percent, to $155.14 Friday. About a year ago the stock was worth less than $120 a share.

TIFFANY NETWORK: CBS announced a bigger profit and more revenue than analysts expected, and its stock gained $1.15, or 1.8 percent, to $65. Media companies have struggled the last few days as investors worried about declining cable ad revenue.

CRUDE CONCERNS: Energy companies bounced back as the price of oil steadied. After steep losses the last two days, benchmark U.S. crude oil rose 19 cents to $45.71 a barrel in New York. Brent crude, the standard for international oil prices, added 28 cents to $48.66 a barrel in London. Oil prices have fallen hard as investors wonder if OPEC will extend a deal that trimmed oil production.

BONDS: Bond prices were little changed. The yield on the 10-year Treasury note remained at 2.35 percent. High-dividend stocks did fairly well Friday morning as telecommunications company's recovered from a hard loss the day before, and utility companies also rose. Banks traded lower.

CURRENCIES: The dollar rose to 112.55 yen from 112.42 yen. The euro dipped to $1.0979 from $1.0981.

OVERSEAS: France's CAC 40 jumped another 0.8 percent as investors hoped centrist candidate Emmanuel Macron will be elected president over the weekend. The CAC 40 is at its highest level since early 2008. Britain's FTSE 100 was up 0.3 percent and Germany's DAX added 0.1 percent. Hong Kong's benchmark Hang Seng index lost 0.8 percent. Markets in Japan and South Korea were closed for holidays.